One of my favorite newsletters from the last year is Justin Welsh's Saturday Solopreneur. Each week he shares one actionable tip, and I've saved many to that I can go back and implement.
One thing I want to highlight for you today is something most readers likely overlook in his weekly emails.
And it hints to a principle that is imperative for each of us to understand and apply to our own businesses
Today you'll learn:
Let's dive in...
Here's the snippet from one of Justin's weekly newsletters:
Did you catch it? It's only one sentence, four words long.
Booking into June 2023.
It's not about how many subscribers he has, it's not about the language he uses to "sponsor this newsletter".
It's that he shows that there is currently more demand than there is supply.
Before we started the 10k Challenge at the beginning of the year I sent out a scorecard to each of the participants to get an idea of where they were in their business and how to best support them in the challenge.
The results showed me that the thing creators struggled with the most was sales:
The average sales score was 23% out of 100.
Not great...
(Yes, this is why I'm writing about the topic today. Getting info on your audience is super helpful for creating content they need!)
A friend of mine, Daniel Priestley, recently wrote a book called Oversubscribed: How to get people lining up to do business with you. β
It's one of the best books I've read on sales and controlling the market forces. The idea is that as soon as you have more demand than supply, you control the economics and can grow your sales, pricing, revenue, and profit.
Sound anything like the creator economy we're all trying to build a business in?
The takeaway here is not to try and serve everyone and become the #1 actor in the entire world. That's not realistic, nor is it the way we teach how to build businesses at Craftsman Creative.
The idea, instead, is to think of the smallest, "minimum viable audience" that you can, become known and trusted in that market as someone who people want to work with, and then tweak your offers to create the proper balance between supply and demand.
Let's look at coaches as an example. Since Tony Robbins coined the term "coach" decades ago, there are now nearly 65,000 business coaches in the US, over 23,000 life coaches, and it's a $15 billion + industry.
Crazy.
So, how do you stand out and carve out a nice bespoke lifestyle business of your own in this crowded space?
It's a simple equation.
How much revenue you want = How much do you charge for your services x How many clients
So for a business that charges $500 per call, to make $100,000 a year you need 200 calls.
Or you can charge $20,000 per client to work with them for a longer period of time and you only need 5 clients per year.
Now that you've identified how many you need, you simply need more demand than there is supply.
You can - and I think you should - control the supply so that it is always less than demand. Yes, you're potentially leaving money on the table, but this allows you to affect the way people see you and your business as in demand, and you can then raise your prices as demand increases to keep the ideal balance.
Going back to Justin, he has two sponsor slots per week in his newsletter, and is booked out 5-6 months in advance.
When he started his sponsor slots were $250. Then they quickly rose to $500, $750, $1,250, and now $1,500.
He didn't need to increse the number of sponsor slots to 4, 5, 10, or more to make that much. He simply needed to control the supply against demand and then raise prices accordingly.
If you want access to his audience, the only way you can get it is by paying $1,500. And you are driven to do that sooner than later because as his subscriber base grows, so will the price to advertise to them.
As a coach, you simply need more demand then there is supply.
Here are a few ways to do that:
If you've struggled with selling enough of your products, though it may seem counterintuitive, take a look at the current supply and demand at play and then change it to be in your favor.
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Daren Smith
βSay π on Twitter | Work With Meβ
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PS - When you're ready, there are a few ways I can help you on your creative journey...
Sponsored by CREATOR ECONOMY EXPOβOne of the best investments I made last year was attending the inaugural Creator Economy Expo (CEX). I gave away 250 copies of my book, connected with dozens of creators - some who have since become members of my community - and realized that I can do this thing if I stick with it. The biggest opportunity of my creative business came out of CEX. I met Joe Pulizzi there, and in the months after I pitched him on an idea for a new podcast, which became the 10k Creator and brought in $12k to my business from sponsors. I'll be attending this year's CEX in Cleveland as a presenter, leading a round table discussion. It's amazing to see what's possible in just one year. Who will you meet? How will your business change and grow? You'll never know unless you take the leap and join us May 1-3 in Cleveland for this year's CEX. Use my code CRAFTSMAN100 to get $100 off of the price of your ticket. We'll see you there!
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βSponsor this newsletter. Booking into next week ;)
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This recent appearance on the Louis & Kyle Show was my favorite podcast interview of 2022. To be on a show that's had guests like Steph Smith, Tiago Forte, Wes Kao, and Amanda Natividad was a highlight of a year full of awesome podcast wins! Check it out here or on your favorite podcast app:
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Take the 10k Challenge for free! I've seen so many people posting that they've been let go from their jobs, so I'm giving a 30-day free trial to the Society of Independent Creators. Plenty of time for you to watch through the six sessions and start working your way through the course.
Start here with the free scorecard, the invite link is on the results page: craftsmancreative.scoreapp.comβ
If you know anyone who's recently lost a job and wants to build a creative business, feel free to share the link with them as well. People are hurting, and I want to help however I can.
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This thread from Neal O'Grady (Co-Founder of Demand Curve) is a nice chaser to today's email on sales:
January 10th 2023
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See you next week!
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